Gross rental yield in Notting Hill currently sits at 3.5–4.8%, which is among the stronger yields in Melbourne, attractive for cash-flow-positive investors. This guide covers pricing, growth trends, and the investor case for 2026.
At a glance: 19 km from CBD · Outer ring · House $700K–$1.0M · Unit $388K–$500K
Median Property Prices – Notting Hill (2026)
| Property Type | Median Price Range | vs Melbourne Median |
|---|---|---|
| House | $700,000–$1,000,000 | ~19% below |
| Unit/Apartment | $387,500–$500,000 | ~23% below |
Estimates based on REIV quarterly data and Domain.com.au listings for 2026. Prices reflect Notting Hill’s outer classification at 19 km from the CBD. Individual properties vary significantly by land size, condition, and micro-location.
Price Growth Trend – Notting Hill
Notting Hill’s property market has been above-average growth as middle-ring pricing pushes buyers outward. Estimated annual capital growth sits at 4–8%, driven by affordability-seeking buyers being pushed outward from the middle ring. Outer suburban growth can be lumpy – strong in years with infrastructure announcements, slower in between – but the long-term trajectory is positive.
Key drivers for Notting Hill:
- Affordability attracting first-home buyers
- Infrastructure investment improving connectivity
- Population growth in Melbourne’s outer corridors
- New housing estates increasing overall suburb profile
Investor vs Owner-Occupier Breakdown
Outer suburbs like Notting Hill attract a mix of investors and first-home buyers. Investors (30–40%) are drawn by higher yields and lower entry prices. Owner-occupiers (60–70%) are predominantly first-home buyers using government grants and stamp duty concessions.
| Buyer Type | Estimated Share | Typical Target |
|---|---|---|
| Owner-occupier | 60–70% | Houses, larger units |
| Investor | 30–40% | Units, smaller houses |
Infrastructure and Development Near Notting Hill
Infrastructure is the single biggest external factor in suburban property growth. Here are the key projects affecting Notting Hill:
- Suburban Rail Loop eastern stations (long-term planning)
- Ringwood East level crossing removal
- Belgrave/Lilydale line upgrades
Impact: Properties within 1 km of new stations or major upgrades typically see 5–15% price premiums within 2–3 years of announcement. Track project timelines at bigbuild.vic.gov.au.
Rental Yield – Notting Hill (2026)
| Metric | Estimate |
|---|---|
| Gross rental yield (units) | 3.5–4.8% |
| Annual rent (1BR median) | $18,018 |
| Unit purchase price (median) | $387,500–$500,000 |
| House purchase price (median) | $700,000–$1,000,000 |
| Estimated annual growth | 4–8% |
Gross yield formula: Annual rent / Purchase price. Net yield (after expenses) is typically 1–1.5% lower after accounting for management fees, maintenance, insurance, and vacancy.
Investor note: Higher gross yields in outer suburbs often attract investors, but factor in longer vacancy periods and higher tenant turnover compared to inner Melbourne.
Related Guides
- Notting Hill Rent Guide
- Cost of Living in Notting Hill
- Notting Hill Neighbourhood Guide
- Notting Hill Transport Guide
- Is Notting Hill Safe?
Prices current as of April 2026. We update this guide quarterly. Got a correction? [email protected]
Sources
- Domain.com.au – property listing data – accessed April 2026
- REIV Quarterly Median Prices – reiv.com.au – accessed April 2026
- ABS Census 2021 – abs.gov.au/census
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